Mortgage assistance schemes prove their worth

17/12/2009

A decline in property repossession figures could be the result of more people with personal income problems seeking help via mortgage assistance schemes and other support channels.

New figures released by the Financial Services Authority (FSA) revealed the number of repossessions in the third quarter of this year totalled 14,000 - five per cent below the total recorded at the beginning of 2009.

With the situation seemingly improving, the Finance and Leasing Association (FLA) has issued a "cautious welcome" to the figures.

"[They suggest] that things are improving for people, but all of the things that are being put in place to help people avoid repossession are just as important now as they were at the beginning of the year," explained FLA head of communications Russell Hamblin-Boone.

He went on to say that credit providers needed access to wholesale finance, although conceded that this is one of the "big challenges" faced by the government.

The FSA figures also revealed a decline in the number of new arrears cases, which declined by ten per cent during 2009's third quarter to 46,000.

Tags; Housing Debt and Bills,

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